It’s important to use credit cards properly, so that you stay out of financial trouble, and boost your credit scores. If you don’t do these things, you’re risking a poor credit score, and the inability to rent an apartment, buy a house or get a new car. Read on for some tips about how to use credit cards.
Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.
Check over your agreement, and make sure you understand all the terms before using your credit card. Legally, using your card for the first time will probably mean that you accept the terms spelled out in that agreement. The fine print may be small; however, you still need to read it all.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
A key credit card tip that everyone should use is to stay within your credit limit. Credit card companies charge outrageous fees for going over your limit, and these fees can make it much harder to pay your monthly balance. Be responsible and make sure you know how much credit you have left.
Be sure not to leave any any portions blank when you sign a receipt at a store or restaurant. If your receipt includes a space for indicating a tip, it’s a good idea for you to zero it out or line through it so that an unauthorized amount does not appear on your final bill. You must also review statements regularly to verify the accuracy of charges to your account.
You need to pay more than the minimum payment each month. If you aren’t paying more than the minimum payment you will never be able to pay down your credit card debt. If you have an emergency, then you could end up using all your available credit. So, each month try to send in a little extra money in order to pay down the debt.
Find a credit card that rewards you for your spending. Spend money on the card that you would need to spend anyway, such as gas, groceries and even, utility bills. Pay this card off each month as you would those bills, but you get to keep the rewards as a bonus.
Compare rewards programs before you choose a credit card company. If you plan to use your credit card for a large percentage of your purchases, a rewards program can save you a great deal of money. Every rewards programs is different, it would be best, to research each one before you make a decision.
Shred old credit card receipts and statements. You can easily purchase an inexpensive home office shredder to handle this task. Those receipts and statements, often contain your credit card number, and if a dumpster diver happened to get hold of that number, they could use your card without your knowledge.
With your credit cards bills, it is important that you make payment no later than your monthly due date. If you pay your credit card bill late, you may be assessed a late payment fee. Paying your bill late can also cause the percentage of interest to be raised on your unpaid balance. These actions will negatively affect your credit score.
It is best to try to negotiate the best interest rate with your credit card company. You may negotiate with your credit card company to obtain a lower rate. With a good payment history to the company and good standing in your account, they will easily consider a rate change.
Always try to find a credit card that does not charge an annual fee. Some credit cards that charge annual fees try to entice users with bonus offers or cash back incentives. While these types of rewards might be tempting, really think about whether or not they are worth the annual fee you will be forced to pay. In many cases, they are not.
Credit card use is important. It isn’t hard to learn the basics of using credit cards properly, and reading this article goes a long way towards doing that. Congratulations, on having taken the first step towards getting your credit card use under control. Now you just need to start practicing the advice you just read.